Breakthrough on procurement to save $140 Million: Global Fund

The Global Fund and partners have established a new framework to systematically organize the purchase of massive amounts of mosquito nets, anti-HIV drugs and other products that will improve delivery and make significant savings, in a ground-breaking approach to procuring tools to fight AIDS, tuberculosis and malaria.

In a first step, the Global Fund will sign contracts with seven manufacturers for the largest-ever bulk purchase of mosquito nets treated with insecticide, with immediate costs savings of US$51.2 million, and projected overall savings of US$140 million for the Global Fund over two years.

The initial contracts, for 90 million mosquito nets, will be part of an overall purchase of 190 million nets by partners in 2014. The new framework reduces base prices across the board, for all partners, and also reduces bottlenecks and shortages in countries where malaria threatens the lives of millions of children under the age of five.

By using large-scale purchasing power, the new framework provides tremendous value for money. It is expected to lead to greater savings for all partners, and that can translate into even greater impact against malaria.

Executive Director of the Global Fund, Mark Dybul said "We can defeat malaria, if we all work together," adding, "This kind of collaboration across sectors, between partners and manufacturers, is essential to controlling malaria and sharply reducing the number of children who die from it each year. And it's good business, too."